Boeing 2005 Annual Report Download - page 65

Notes to Consolidated Financial Statements
In addition to the customers listed above, some other cus-
tomers have requested a restructuring of their transactions.
BCC has not reached agreement on any other restructuring
requests that we believe would have a material adverse effect
on our earnings, cash flows and/or financial position.
Scheduled payments on customer financing are as follows:
Sales-Type/ Operating
Finance Lease
Principal Lease Equipment
Payments on Payments Payments
Year Notes Receivable Receivable Receivable
2006 $ 232 $ 367 $ 500
2007 230 429 433
2008 368 317 373
2009 160 297 308
2010 172 284 263
Beyond 2010 1,163 3,084 1,267
Customer financing assets we leased under capital leases and
have been subleased to others totaled $200 and $298 at
December 31, 2005 and 2004.
Note 11 - Property, Plant and Equipment
Property, plant and equipment at December 31 consisted of
the following:
2005 2004
Land $ 481 $ 470
Buildings 9,287 9,677
Machinery and equipment 8,750 10,318
Construction in progress 1,174 940
19,692 21,405
Less accumulated depreciation (11,272) (12,962)
$ 8,420 $ 8,443
Depreciation expense was $1,001, $1,028 and $1,005 for the
years ended December 31, 2005, 2004 and 2003, respectively.
Interest capitalized during the years ended December 31,
2005, 2004 and 2003 totaled $84, $71 and $72, respectively.
Rental expense for leased properties was $400, $372 and
$429, respectively, for the years ended December 31, 2005,
2004 and 2003, respectively. These expenses, substantially all
minimum rentals, are net of sublease income. Minimum rental
payments under operating and capital leases with initial or
remaining terms of one year or more aggregated $1,961 and
$16, net of sublease payments, for the year ended December
31, 2005. Payments, net of sublease amounts, due during the
next five years are as follows:
2006 2007 2008 2009 2010
Operating leases $275 $214 $156 $137 $115
Capital leases 8 8
Note 12 - Investments
Our investments, which are recorded in either Short-term
investments or Investments, consisted of the following at
December 31:
2005 2004
Available-for-sale investments $3,304 $3,229
Investments in operating activities,
primarily joint ventures 84 67
Other non-marketable securities 18 73
Investments in available-for-sale debt and equity securities
Our investments in available-for-sale debt and equity securities
consisted of the following at December 31:
2005 2004
U
Cost
Gross
nrealized
Gain
Gross
Unrealized
Loss Estimated Fair Value U Cost
Gross
nrealized
Gain
Gross
Unrealized
Loss Estimated Fair Value
Debt:(1)
Marketable Secuities(2) $3,065 $(40) $3,025 $2,903 $(12) $2,891
ETCs/EETCs 258 $26 (15) 269 364 (39) 325
Equity 4 6 10 4 $9 13
$3,327 $32 $(55) $3,304 $3,271 $9 $(51) $3,229
(1)At December 31, 2005 and 2004, $3,138 and $325 of these debt securities have been in a continuous unrealized loss position for 12 months
or longer.
(2)The portfolio is diversified and highly liquid and primarily consists of investment grade fixed income instruments such as U.S. dollar debt obliga-
tions of the United States Treasury, other government agencies, corporations, mortgage-backed and asset-backed securities. The portfolio has an
average duration of 1.6 years. We believe that the unrealized losses are not other-than-temporary. We do not have a foreseeable need to liquidate
the portfolio and anticipate recovering the full value of the securities either as market conditions improve, or as the securities mature. During the
years ended December 31, 2005 and 2004, gross realized gains and losses on these investments were not material.
The Boeing Company and Subsidiaries 63